The Somalia Investor – Issue#5
As the World Bank predicts a brighter economic prospect for Somalia, there is one nagging problem that must be resolved if the quality of life is to improve as the economy grows: Cost of fuel. In the absence of a downstream oil regulatory regime, fuel pump prices in Somalia have remained high in disregard of the drastic fall in global oil prices.
For a country that relies heavily on electricity produced by diesel generators, its high power tariffs, indeed the highest in Africa, have stayed put and continue to frustrate businesses and households. These are all the result of poor regulation of the two important industries. It is time the Federal Government of Somalia (FGS) stepped in to regulate oil and power with a view to passing down the benefits of reduced global oil prices.